M&M Company's income statement for the year ended December 31, 2020 (considered as the fifth of operations), shows pretax income of P3,000,000. The company's tax rate for 2020 is 30%. The follo items are treated differently on the tax return and in the accounting records: Ταx Retum P140,000 Accounting Records P240,000 Rent revenue Depreciation expense Premium on officers' life insurance and the family is the beneficiary The records also show that the net sales are P60M; cost of goods sold is P29M; sales return 560,000 440,000 280,000
M&M Company's income statement for the year ended December 31, 2020 (considered as the fifth of operations), shows pretax income of P3,000,000. The company's tax rate for 2020 is 30%. The follo items are treated differently on the tax return and in the accounting records: Ταx Retum P140,000 Accounting Records P240,000 Rent revenue Depreciation expense Premium on officers' life insurance and the family is the beneficiary The records also show that the net sales are P60M; cost of goods sold is P29M; sales return 560,000 440,000 280,000
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter15: Financial Statement Analysis
Section: Chapter Questions
Problem 19BEA
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What is the income tax payable for 2020? (Apply the pre-CREATE law rulings)
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